Provident is grateful to have the opportunity to play a part in the University of Washington's long-term objectives for its flagship Seattle campus. The acquisition of 2 key properties surrounding campus not only provides students and their families access to housing, but also generates capital for UW to invest in other mission-critical priorities on campus.
In May2023, following a thorough procurement process, Provident was selected to serve as the nonprofit Borrower/Owner for the acquisition of 2 existing student and faculty housing projects near the flagship campus of the University of Washington (“UW”) in Seattle. Previously owned by UW, the sale of the Projects would provide funding for other key on-campus projects at the University.
The first of the two projects, Radford Court, is located approximately 2.5 miles from campus on approximately 22 acres. Made up of 399 apartment units, Radford Court houses undergraduate and graduate students, students with families, as well as University staff. The property includes 579 beds across one, two, and three-bedroom units. The property also includes numerous amenities, including a childcare center, which will be leased to the University. With a focus on affordability, approximately 32% of the units at Radford Court will be reserved for low-income student families with household incomes that do not exceed 50% of area median income at the time of initial occupancy.
Nordheim Court, the second of the two projects, is located on 3 acres, less than a10-minute walk from campus. The property consists of 460 beds across 146 units. Built in 2003, Nordheim Court rents by-the-bed with its units and operations tailored toward University students, and there are no income or rent restrictions at the property.
Financing. The acquisitions were financed on April 18, 2024 through the issuance of $183.73 million fixed rate tax-exempt Nonprofit Revenue Bonds by the Washington State Housing Finance Commission, amortizing over 35 years, and placed by Barclays and Raymond James as Co-Senior Managers on the offering. Security is provided by revenues of the Projects, which provide for an S&P rating of “BBB-”. Provident was represented by Fishman Haygood. Pacifica Law Group LLP, served as Bond Counsel and Kutak Rock, served as Underwriters’ Counsel.
Development& Management. Greystar will serve as Manager of the Projects, and as Developer on certain improvements at each property.
